Which one of the following identifies a benefit that a business can receive by applying sound risk management?

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Which one of the following identifies a benefit that a business can receive by applying sound risk management?

A. It will meet state and federal safety regulations.

B. It will have a better opportunity to achieve business goals.

C. It will not have to worry about losses.

D. It will be able to attract and retain talented employees and managers.

Answer: B

AINS Chapter 7

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

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